N.Y. Urban Development Corporation Act 174/68 § 58: Gateway project

* § 58. Gateway project. 1. Findings and declaration of need. The

state of New York finds and determines that providing funding for the

passenger rail transportation project commonly known as the gateway

project, is needed to preserve and improve the functionality and

strengthen the resiliency of long-distance and commuter rail

infrastructure between the state of New York and the state of New

Jersey.

2. Definitions. When used in this section:

(a) "Commission" shall mean the gateway development commission, a

bi-state commission and a body corporate and politic established by the

state of New Jersey and the state of New York, acting in the public

interest and exercising essential governmental functions in accordance

with the Gateway development commission act, and any successor thereto.

(b) "Federal transportation loan" shall mean one or more loans made to

the commission to finance the Hudson tunnel project under or pursuant to

any U.S. Department of Transportation program or act, including but not

limited to the Railroad Rehabilitation & Improvement Financing Program

or the Transportation Infrastructure Finance and Innovation Act, which

loan or loans are related to the state capital commitment.

(c) "Gateway development commission act" shall mean chapter 108 of the

laws of New York, 2019, as amended.

(d) "Gateway project" shall mean the Hudson tunnel project.

(e) "Hudson tunnel project" shall mean the project consisting of

construction of a tunnel connecting the states of New York and New

Jersey and the completion of certain ancillary facilities including

construction of concrete casing at Hudson Yards in Manhattan, New York

and the rehabilitation of the existing North River Tunnels.

(f) "State capital commitment" shall mean (i) an aggregate principal

amount not to exceed $2,850,000,000, plus (ii) any interest costs,

including capitalized interest, and (iii) related expenses and fees, all

of which shall be payable by the state of New York to, or at the

direction of, the commission under one or more service contracts or

other agreements pursuant to this section, as well as any expenses of

the state incurred in connection therewith.

(g) "Related expenses and fees" shall mean commitment fees, servicing

and monitoring costs, credit risk premium payments and similar charges,

administrative fees and other ancillary costs, expenses and fees

incurred, and to become due and payable, by the commission in connection

with the Federal transportation loan, or by the state in connection with

any service contract.

3. Notwithstanding any other provision of law to the contrary, in

order to provide for the payment for the state capital commitment, the

director of the budget is hereby authorized to enter into one or more

service contracts or other agreements with the commission, none of which

shall exceed the maximum duration of the Federal transportation loan,

upon such terms and conditions as the director of the budget and

commission agree, so as to provide to or at the direction of the

commission, for each state fiscal year, a sum not to exceed the amount

required to be paid as principal and interest under the Federal

transportation loan for such fiscal year, plus related expenses and fees

for such fiscal year. Any such service contract or other agreement shall

provide that the obligation of the state to pay the amount therein

provided shall not constitute a debt of the state within the meaning of

any constitutional or statutory provision and shall be deemed executory

only to the extent of monies available, that no liability shall be

incurred by the state beyond the monies available for such purpose, and

that such obligation is subject to annual appropriation by the

legislature. Any such service contract or other agreement and any

payments made or to be made thereunder may be assigned and pledged by

the commission as security for the repayment by the commission of the

Federal transportation loan.

4. The director of the budget is also authorized to enter into such

other agreements and to take or cause to be taken such additional

actions as are necessary or desirable to effectuate the purposes of the

transactions contemplated by the state capital commitment provided for

herein and the service contract or other agreement authorized by

subdivision 3 of this section.

5. On or before the beginning of each quarter, the director of the

budget shall certify to the state comptroller the estimated amount of

monies that shall be reserved in the general debt service fund for

payment pursuant to any service contract authorized by subdivision 3 of

this section payable by such fund during each month of the state fiscal

year. Such certificate may be periodically updated, as necessary.

Notwithstanding any provision of law to the contrary, the state

comptroller shall reserve in the general debt service fund the amount of

monies identified on such certificate as necessary for payment pursuant

to any service contract authorized by subdivision 3 of this section

during the current or next succeeding quarter of the state fiscal year.

Such monies so reserved shall not be available for any other purpose.

Such certificate shall be reported to the chairpersons of the Senate

Finance Committee and the Assembly Ways and Means Committee.

* NB There are 2 § 58's